Accountancy, asked by gabriella5080, 1 year ago

Why working capital known as current assets minus the current liabilities

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Answered by jotwanianjali41
0

Working capital is known as Current assets minus current liabilities because if business have more current assets than current liabilities than it shows that business has more liquidity...which will be able to pay the liabilities...and that excess current assets can be used as working capital.

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